Mizuho Securities Upgrades Hudson Pacific Properties (HPP) to Outperform

Mizuho Securities upgraded Hudson Pacific Properties (NYSE: HPP) from Neutral to Outperform with a price target of $37.00.

Analyst Richard Anderson commented, "Although HPP stock traded well lately, we still estimate a 12.5% discount to our $36.85 NAV estimate. What we think gets the stock going from here is several-fold. First, the investor day in May seemed to spark renewed investor enthusiasm, in a REIT industry where the search for alpha has become increasingly difficult. Second, after a year+ debate of how and when a moderating technology environment would negatively impact HPP's prospects, the company just continues to perform in the Bay Area (aided by an embedded mark-to-market (MTM) cushion of 129%, 23% and 21% for SF, the Peninsula and Silicon Valley, respectively). We think valuation provides a very reasonable rationale to make a bull case on the stock, considering that underlying math. And third, we are coming to the conclusion that a soft landing in tech is the higher probability of outcomes (relative to the loud burst of the 2001 bubble), although that unknown remains the key risk to the story. HPP is reporting 2Q16 on August 4, and we expect the positive thesis to continue and be re-communicated (and then some) at that time."

For an analyst ratings summary and ratings history on Hudson Pacific Properties click here. For more ratings news on Hudson Pacific Properties click here.

Shares of Hudson Pacific Properties closed at $32.21 yesterday.

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